In today’s briefing:
- Huafa Property Services (982 HK)’s Knockout Offer
- Activism Takes On CMCDI (133 HK)
- Huafa Property Services (982 HK): Scheme Offer at HK$0.29
- Quiddity Leaderboard TDIV Jun 24: Five Changes Likely; US$1.3bn One-Way
- SeaTown leads US$40M funding of asset servicing firm Linnovate Partners | e27
- Crypto Crisp: “There Is No Second Place”
Huafa Property Services (982 HK)’s Knockout Offer
- After entering a trading halt on the 16th May pursuant to the Takeover’s Code, property manager Huafa Property Services (982 HK) has now announced a privatisation by way of a Scheme.
- The cancellation price of A$0.29/share is a 30.63% to last close, a 70.59% premium over the 30-day average close, and a life-time high price. The price is final.
- The Offeror, Zhuhai Huafa, a state-owned enterprise wholly-owned by Zhuhai SASAC, plus concert parties hold 42.63% of shares out. Clean deal.
Activism Takes On CMCDI (133 HK)
- In January this year, Argyle Street, a (now) 8% shareholder of China Merchants China Direct Investments (133 HK) (CMCDI), a closed-end investment company, proposed a solution to boost shareholder value.
- Two months later, Rydal Value Fund (stake unknown) also proposed a means to boosting shareholder value along similar lines.
- CMCDI is currently trading at a ~63% discount to NAV. But it is up 78% since Argyle’s initial proposal, and recently touched a six-year high. Argyle is still buying.
Huafa Property Services (982 HK): Scheme Offer at HK$0.29
- Huafa Property Services Group (982 HK) announced a privatisation offer from Huafa Industrial Co., Ltd. Zhuhai (600325 CH) at HK$0.29 per share, a 30.6% premium to the undisturbed price.
- Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders rejection) and a headcount test. No shareholder holds a blocking stake.
- The offer, which has been declared final, is attractive compared to historical share prices and peer multiples. This is a done deal, with payment likely in November.
Quiddity Leaderboard TDIV Jun 24: Five Changes Likely; US$1.3bn One-Way
- In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the June 2024 index rebal event.
- Today is the base date for the June 2024 index review. We expect five changes and some of these names are different from our previous set of expected ADDs/DELs.
- We estimate one-way flow to be around US$1.3bn which translates to a turnover of around 20%.
SeaTown leads US$40M funding of asset servicing firm Linnovate Partners | e27
- Singapore-based Linnovate Partners, an asset servicing and fintech company for the alternative investment industry, has received a US$40 million funding commitment led by Temasek-owned SeaTown Private Capital Master Fund.
- This capital infusion will enable Linnovate to scale operations and drive innovation.
- Henry Lin, founder and CEO of Linnovate Partners, said: “This investment will be instrumental in accelerating our growth trajectory, providing us with the necessary resources to enhance our service offering, and continue delivering cutting-edge solutions to our clients and the industry itself.”
Crypto Crisp: “There Is No Second Place”
- Do we even need to mention the most significant news from last week? Probably not.
- However, here is a brief summary: the U.S. Securities and Exchange Commission (SEC) approved an Ethereum spot ETF on Thursday.
- Almost as significant as the approval itself is the shift in the U.S. regulatory environment’s tone toward crypto.
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